On-chain indicators look bullish for ethereum as whale activity around the asset decreases.
ethereum (eth) fell by 3.8% over the past 24 hours and is trading at $2,620 at the time of writing. The asset’s market cap currently stands at $315 billion. However, eth’s daily trading volume increased by 3% and reached $15.6 billion.
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According to data provided by Santiment, ethereum’s total open interest decreased from $5.28 billion on August 12 to $5.05 billion at the time of reporting. Typically, one would expect lower price volatility with an asset’s open interest declining due to fewer liquidations.
Data from the market intelligence platform shows that the total funding rate aggregated by eth fell below the market zero for the first time since October 2023, currently standing at -0.0002%.
Historically, a negative funding rate has triggered short-term bullish momentum for ethereum even though traders were expecting a price drop.
According to Santiment, the number of whale transactions consisting of at least $100,000 worth of eth has been steadily declining over the past three days, dropping from 5,371 on August 12 to 4,346 unique transactions over the past day.
Furthermore, ethereum’s Relative Strength Index also shows that the asset is slightly oversold, currently hovering around the 42 mark. It is important to note that a further sell-off could trigger FUD and push the eth price even lower.
One of the main reasons behind the recent drop in eth price is the liquidation of Jump Trading. The company has already accumulated over $64 million worth of eth tokens from different platforms and it looks ready for sale.
